Djerriwarrh (DJW)

Listed investment company
Djerriwarrh
posted its highest daily gain in three weeks of more than 4 per cent on Monday, despite reporting a near-46 per cent drop in operating profit to $20.1 million for the half-year to December.

Managing director Ross Barker noted the interim result was likely to mark the bottom of the cycle for slashed dividend payments from its portfolio companies, one driver perhaps behind the modest gain in share price.

Traditional LICs such as Djerriwarrh, Australian Foundation Company and AFIC have been able to hold share prices steady through the downturn due to retained earnings which enabled them to maintain dividends.

Despite the strong recovery last year, Djerriwarrh and other LICs have remained popular with investors due to fears around market volatility.

Djerriwarrh posted only slight portfolio outperformance of 26.9 per cent over the half-year, compared to a 25.6 per cent lift in the S&P/ASX 200 Accumulation Index, and held cash of $40 million at the end of last year.